We have returned, better than ever! Here is what we have been up to for the past two years:
Having sold our value-add portfolio at the market’s peak, I realized that the value-add strategy had run its course. People were willing to pay exorbitant prices for outdated property, but the return on investment was not worth the effort or risk.
However, in every market an opportunity awaits.
I have been fortunate to find ours in the conversion of office spaces into multifamily properties. Our current project is the conversion of 200,000 square feet of 1980s office space into middle-market workforce housing. The asset’s basis is unbelievably and is ideally positioned for long-term value growth.
On a macro level, the distressed office property market provides an opportunity to convert these properties to multifamily at substantial discounts. While many developers can conceptualize these opportunities, few have the expertise to execute the conversions properly. Fortunately, I have found the perfect business partner, that has the experience to get this done. I have also written a white paper that outlines the risks and benefits of converting office spaces to multifamily properties. (it is attached to this post)
While I have been busy with this project, I have also been keeping a close eye on the core-plus and value-add spaces. I am now starting to see opportunities emerge as the market adjusts to higher interest rates and flattening rent growth. These opportunities could be the subject of another white paper, but suffice it to say that we are ready to move forward.
We look forward to continuing this journey with you, your family, and your firm.